diff --git a/pkg/usrmgr/hash_password.go b/pkg/usrmgr/hash_password.go
new file mode 100644
index 000000000..8078695c6
--- /dev/null
+++ b/pkg/usrmgr/hash_password.go
@@ -0,0 +1,135 @@
+// Copyright (c) 2025 Probo Inc <hello@getprobo.com>.
+//
+// Permission to use, copy, modify, and/or distribute this software for any
+// purpose with or without fee is hereby granted, provided that the above
+// copyright notice and this permission notice appear in all copies.
+//
+// THE SOFTWARE IS PROVIDED "AS IS" AND THE AUTHOR DISCLAIMS ALL WARRANTIES WITH
+// REGARD TO THIS SOFTWARE INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY
+// AND FITNESS. IN NO EVENT SHALL THE AUTHOR BE LIABLE FOR ANY SPECIAL, DIRECT,
+// INDIRECT, OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES WHATSOEVER RESULTING FROM
+// LOSS OF USE, DATA OR PROFITS, WHETHER IN AN ACTION OF CONTRACT, NEGLIGENCE OR
+// OTHER TORTIOUS ACTION, ARISING OUT OF OR IN CONNECTION WITH THE USE OR
+// PERFORMANCE OF THIS SOFTWARE.
+
+package usrmgr
+
+import (
+	"crypto/hmac"
+	"crypto/rand"
+	"crypto/sha256"
+	"crypto/subtle"
+	"encoding/binary"
+	"fmt"
+
+	"golang.org/x/crypto/pbkdf2"
+)
+
+type (
+	HashingProfile struct {
+		minIterations uint
+		saltLength    uint
+		keyLength     uint
+		pepper        []byte
+	}
+)
+
+const (
+	versionByte   = 0x01 // Version identifier
+	algorithmByte = 0x01 // Algorithm identifier (0x01 for PBKDF2-SHA256)
+)
+
+func NewHashingProfile(pepper []byte) (*HashingProfile, error) {
+	if len(pepper) < 32 {
+		return nil, fmt.Errorf("pepper must be at least 32 bytes")
+	}
+
+	// NIST SP 800-63B recommendations:
+	// - At least 32 bits of salt (we use 256 bits/32 bytes for extra security)
+	// - At least 1000 iterations (we use higher based on processing capabilities)
+	// - Resulting key length should be at least 160 bits (we use 256 bits)
+	return &HashingProfile{
+		minIterations: 600000, // Minimum iterations (adjusted based on hardware speed)
+		saltLength:    32,     // Salt length in bytes (256 bits)
+		keyLength:     32,     // Output key length in bytes (256 bits)
+		pepper:        pepper, // Pepper length in bytes (256 bits)
+	}, nil
+}
+
+func (hp HashingProfile) applyPepper(input []byte) []byte {
+	mac := hmac.New(sha256.New, hp.pepper)
+	mac.Write(input)
+	return mac.Sum(nil)
+}
+
+func (hp HashingProfile) HashPassword(password []byte, iterations uint32) ([]byte, error) {
+	salt := make([]byte, hp.saltLength)
+	if _, err := rand.Read(salt); err != nil {
+		return nil, fmt.Errorf("error generating salt: %v", err)
+	}
+
+	pepperedPassword := hp.applyPepper([]byte(password))
+	hash := pbkdf2.Key(pepperedPassword, salt, int(iterations), int(hp.keyLength), sha256.New)
+
+	// Binary format:
+	// [1B version][1B algorithm][4B iterations][1B salt length][salt bytes][hash bytes]
+	binaryHash := make([]byte, 0, 7+hp.saltLength+hp.keyLength)
+
+	// Version and algorithm
+	binaryHash = append(binaryHash, versionByte)
+	binaryHash = append(binaryHash, algorithmByte)
+
+	// Iterations (4 bytes, big endian)
+	iterBytes := make([]byte, 4)
+	binary.BigEndian.PutUint32(iterBytes, iterations)
+	binaryHash = append(binaryHash, iterBytes...)
+
+	// Salt length and salt
+	binaryHash = append(binaryHash, byte(hp.saltLength))
+	binaryHash = append(binaryHash, salt...)
+
+	// Hash
+	binaryHash = append(binaryHash, hash...)
+
+	return binaryHash, nil
+}
+
+func (hp HashingProfile) ComparePasswordAndHash(password, passwordHash []byte) (bool, error) {
+	if len(passwordHash) < 7 {
+		return false, fmt.Errorf("hash too short")
+	}
+
+	if passwordHash[0] != versionByte {
+		return false, fmt.Errorf("unsupported hash version: %d", passwordHash[0])
+	}
+
+	if passwordHash[1] != algorithmByte {
+		return false, fmt.Errorf("unsupported algorithm: %d", passwordHash[1])
+	}
+
+	// Extract iterations
+	iterations := binary.BigEndian.Uint32(passwordHash[2:6])
+
+	if iterations < uint32(hp.minIterations) {
+		return false, fmt.Errorf("iterations below minimum security threshold")
+	}
+
+	// Extract salt length and validate
+	saltLen := int(passwordHash[6])
+	if saltLen < 32 { // NIST minimum requirement
+		return false, fmt.Errorf("salt length below security minimum")
+	}
+
+	if len(passwordHash) < 7+saltLen+int(hp.keyLength) {
+		return false, fmt.Errorf("invalid hash length")
+	}
+
+	salt := passwordHash[7 : 7+saltLen]
+	storedHash := passwordHash[7+saltLen:]
+
+	pepperedPassword := hp.applyPepper([]byte(password))
+
+	newHash := pbkdf2.Key(pepperedPassword, salt, int(iterations), len(storedHash), sha256.New)
+
+	return subtle.ConstantTimeCompare(storedHash, newHash) == 1, nil
+}